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Section A: General News


Hospital reports best financial year ever




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April 3, 2013 | 1,019 views | 1 comment

Editor’s note: The March 27 article, “Reporting error accounts for hospital’s near $1M loss,” incorrectly referred to an “error in accounting.” In fact, as explained here, the appearance of a $1.2 million loss was due to nuances in how the Connally Memorial Medical Center’s finances are reported, and the hospital just experienced its best financial year ever.

FLORESVILLE -- Connally Memorial Medical Center would like to clarify that there was no “reporting error” as reported March 27 in the Wilson County News. The adjustment for $1.2 million was for a payment received from the Centers for Medicare & Medicaid Services (CMS).

Connally was awarded the incentive payment for successfully meeting the Meaningful Use standards. The Meaningful Use program incentivizes hospitals to promote the utilization of electronic health records to improve health care in the United States.

Patricia Solis, the hospital’s executive director of financial services, explained the adjustment at the March 21 Wilson Memorial Hospital Board meeting during the summary presentation of Connally’s Operating and Total Net Income (Loss) for fiscal years 1996 through 2012.

The $1.2 million payment was received in fiscal year 2013 after the hospital reporting for fiscal year 2012 ended. The hospital’s annual audit was completed in February, when the auditors proposed to adjust this incentive from fiscal year 2013 to fiscal year 2012. The adjustment was made in February 2013 financials. Without this adjustment, Connally’s net income for February would have been a favorable $269,575.

“The recognition of revenue related to incentive payments can be complex,” said Connally CEO Jerome Brooks. “Although the adjustment was significant, there was no error made and there was no actual loss of funds.”

Brooks said the hospital’s financial condition has never been healthier than it is now.

“Fiscal Year 2012 was the best financial year in the history of this hospital,” Brooks said. “Each person on our team is dedicated to being good stewards.”

In fiscal year 2012, the hospital reported positive operating income of $951,276. For the first time in 16 years, Connally has achieved a positive operating income. From fiscal year 1996 through 2011, the hospital reported an average loss of operating income of $1,308,211.
 

Your Opinions and Comments

 
New Guy  
Wilson County  
April 3, 2013 10:27pm
 
"Nuances" sounds like Bush's "fuzzy math" comment. Time for an official review by a third party.

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